Thursday, November 26, 2015

From problem to profit: The day the "notorious" 1MDB moves markets

The anti-Arul movers and shakers will be shaking their hands in anger reading this BBC article but I hope they can calm down and accept the facts as just that - facts. The fact is, the sale of Edra power assets was a major coup. Even the timing of the deal - done while the presidents and prime ministers of the US, China, India, etc were here in KL - was great, coincidental or not. The 1MDB's rationalisation plan looks to be on course, with some sources saying that Arul Kanda, the 1MDB chief, may just end up making a cool couple of billion US dollars in profit at the end of the day (plus TRX!). I don't wish to be too confident on behalf of the 1MDB but, well, things are, really, looking up.

Jo: Ok, maybe with a bit of help ...

Johari: 1MDB can resolve debt issue without Government help

KUALA LUMPUR, Nov 25: 1Malaysia Development Berhad (1MDB) is confident of resolving its debt and cash flow issue more quickly without help from the Government, the Dewan Rakyat was told Wednesday.

The 1MDB issue is not a cause for the fall of the ringgit, said Deputy Finance Minister Datuk Johari Abdul Ghani.

"On the contrary, several external factors, such as the fall in crude oil prices and a global economy dependent on exports, are exerting pressure on the ringgit," he said when replying to an oral question from Siti Zailah Mohd Yusoff (PAS-Rantau Panjang).

Johari said all strategic planning under the 1MDB rationalisation plan were being implemented quickly towards reducing the debt-incurred interest of the company.

"1MDB has planned and is implementing the rationalisation measures, including asset sale and equity partnership. We are confident of resolving the amount of debt incurred without government financial assistance," he said.

1MDB said recently the rationalisation plan involves, among others, debt-for-assets exchange with International Petroleum Investment Company (IPIC), sale of equity in Edra Energy and Bandar Malaysia, sale of land in TRX (Tun Razak Exchange) and disposal of non-core assets. - Bernama

I just paid off my 5 year old car loan, now need to settle the house loan...another 12 years to go. The car has depreciated to less than half of its purchase price, but the house has appreciated 2.5 times. So overall I made a 'profit' yeay...

Latuk, jual assets untuk bayar hutang. That is not business. And you are proud of that ? Sheeeesh..Is your head on your shoulders ?

1MDB is supposed to be a sovereign WEALTH fund. Create Wealth for the people from your surplus, lest you forget. It should create value. It should show real profits, in hard cash. Not units, or some paper gain due to clever revaluation.

With this kind of business model, it is a sovereign DEPLETION fund. You deplete your national coffers, you lose control of a portion of strategic assets, you lose precious land that was put aside for bumiputra development.

Not to mention you lose credibility, lose honour and integrity. The world does not respect this nation anymore. You understand latuk ?

And, tell you what. You make people lose hope. And that cannot be recovered. That is sad.

before 1mdb bought over the power plants, they were held by the locals.after 1mdb bought over, it did not add value to the power plants.. nor was there any benefits to the rakyat. on the contrary, electricity tariff rate continue to go up as much as 15% on Jan 2014

now are we suppose to be celebrating when the sad truth is, because of 1mdb gatai-gatai forays into the energy sector, these power plants are now in the hands of foreigners, a glc owned by China.

We are allowing foreign companies to own assets that are of national interest! These assets were quietly sitting in the hands of Malaysian until Edra came knocking on their doors and messed everything up

Malaysian leaders are forever proclaiming themselves Malay nationalists, stirring communal frictions in the process. But the reality is that money so often speaks louder than words. Having become used to receiving checks for doing nothing in the name of the New Economic Policy and wealth re-distribution, the UMNO leaders are easy prey for those who combine a political agenda with large bags of cash. The Ali-Baba syndrome, in which ethnic Chinese provide capital and labor and Malays the political entrée while acting as figureheads and doing very little, is alive and well at state as well as enterprise level.

Beijing knows better than anyone the hollowness of Malay nationalism other than as a means of extracting rent from non-Malay communities. And scandals like 1MDB look to provide an ideal opportunity to pursue its long term goal of South China Sea hegemony.

RPK's IQ is somewhere in the low-normal range; he is really not too bright, although in his own (mistaken) estimation, he is one of the wisest men in history. Hence, those pompous, long-winded bits of drivel in which the pompous pakcik holds forth on weighty matters like Democracy and Religion.

His blog is full of phrases like "conspiracy", "topple" and "treason", but he lacks the mental depth to see that these phrases are legally meaningless. Nor does the govt's abuse of s124 and SOSMA make this any more valid. Reporting a crime or passing on documents is not a crime in itself.

In common with other highly-paid hookers, he is more than happy to talk about his paymaster's "big stick", but steers well clear of the fact that his paymaster is toppling democracy faster than anyone else in Malaysia.

Anyway, there is very little that a fat, bald man in Manchester can do if there is an open rebellion in UMNO.

The China buyer is NOT an 'ordinary' buyer in the commercial sense.Three main reasons can be advanced for the purchase of Edra :-1) The buyer is flushed with funds. No point commercially speaking for the billions of USD in its profit account doing nothing, 2) the purchase involved strategic assets. For sure there will be guarantee of continuous flow of revenues from these power plants. The assets will also appreciate in value ,3) The purchase is part of a scheme of China in psyops/psywar to win the hearts and minds of Malaysia to exert its influence globally.

If it was based on purely commercial consideration , no company would have paid Edra that price.

Defence counsel wrote to the new A-G, the new A-G dropped the charges.

No reasons given.

That's 50 million of public money gone.

You need to reassess your "Paid Professionalism", I think...or your kids will need to explain to your granddkids one day what datuk did for a living. If you're still alive, that won't be pleasant for you, bro.

“First you unjustly and arbitrarily detain a politician. Now you’re going after his lawyer as well?” he wrote, referring to the arrests of Chang and former Umno leader Datuk Seri Khairuddin Abu Hassan.

“Sosma was designed to detain terrorists who pose a direct threat to our national security, not to suppress dissenters!

“You suppressed news portals which unravelled the scandal, you quashed dissenters through a law intended for terrorists, you haven’t sued foreign newspapers which you claimed that you would, the list continues...

“I guess you really do not care about the trust deficit which you’re facing or the prospects of sinking Malaysia with you.

“In the end, it’s all about you and not about Malaysia. That’s a national disgrace. You are a national disgrace.”

If anything coming from MOH it is criticisable; Scented vaporizer is used for fun but on the other hand mosquito vape is used for protection. In future when mosquito vape is used for fun, it may get banned as well. When that happened the demand for mosquito net is increased tremendously and its business booms.